Heavy Equipment Manufacturer Spare Parts Inventory Optimization
Comprehensive spare parts inventory across 6 distribution centers for a leading heavy equipment manufacturer, achieving complete ERP reconciliation and implementing optimized min-max levels.
Critical Inventory Discrepancies Impacting Service Operations
A Fortune 500 heavy equipment manufacturer faced significant challenges with their spare parts inventory across multiple distribution centers, directly impacting their ability to service equipment in the field.
ERP System Discrepancies
Significant variances between physical inventory and ERP records causing stockouts and excess inventory
Inconsistent Identification
58,000+ SKUs with inconsistent labeling and identification across facilities
Obsolete Inventory
Unknown quantities of obsolete parts consuming valuable warehouse space and capital
Service Level Impact
Inventory inaccuracies leading to delayed equipment repairs and customer dissatisfaction
Annual cost of inventory inaccuracies and stockouts
Comprehensive Multi-Site Inventory Program
A phased approach combining physical verification, advanced tagging technology, and data optimization across all distribution centers.
Phase 1: Physical Verification
Complete wall-to-wall inventory of all 6 distribution centers using handheld RFID and barcode scanners.
- 58,000+ SKUs physically verified
- Location accuracy validation
- Condition assessment
Phase 2: Asset Tagging
Implementation of dual barcode and RFID tagging system for enhanced tracking and identification.
- Industrial-grade RFID tags
- Durable barcode labels
- Location bin labeling
Phase 3: ERP Reconciliation
Complete reconciliation of physical findings with ERP system data and resolution of all discrepancies.
- Variance analysis and resolution
- Data cleansing and standardization
- System updates and validation
Phase 4: Optimization Analysis
Data-driven analysis to identify obsolete inventory and optimize stocking levels across the network.
- Obsolescence identification
- Slow-moving parts analysis
- Demand pattern analysis
Phase 5: Min-Max Implementation
Development and implementation of optimized min-max inventory levels for all critical spare parts.
- Statistical analysis of usage patterns
- Lead time consideration
- Service level optimization
Phase 6: Documentation
Comprehensive reporting and recommendations for ongoing inventory management improvements.
- Detailed variance reports
- Optimization recommendations
- Best practice guidelines
Project Execution
Deployed a team of 28 experienced inventory specialists across all 6 distribution centers, completing the entire program in 9 weeks with minimal disruption to daily operations.
Transformative Impact on Operations
The comprehensive inventory program delivered significant improvements in accuracy, efficiency, and cost savings.
Inventory Accuracy
Complete ERP reconciliation achieved
Accuracy improvement
Cost Savings
Annual operational improvements
Total annual savings
Faster Order Fulfillment
Improved location accuracy and system reliability
Inventory Reduction
Optimized stocking levels across network
Service Level Achievement
Consistent parts availability for field service
Project by the Numbers
Comprehensive inventory transformation across the entire distribution network
Unique SKUs Verified
Individual Parts Counted
RFID Tags Applied
Discrepancies Resolved
Multi-Site Coordination
Simultaneous operations across 6 distribution centers in 4 states, with centralized project management and quality control.
Quality Assurance
Three-tier verification process with 100% audit of high-value items and statistical sampling of remaining inventory.
On-Time Delivery
Project completed 3 days ahead of schedule despite scope expansion to include additional obsolescence analysis.
Ready to Optimize Your Spare Parts Inventory?
Let our experts help you achieve complete inventory accuracy and optimize your stocking levels across your distribution network.
